June 26, 2012
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled mobile handset specialist Nokia (NYSE: NOK ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Nokia's business and see what CAPS investors are saying about the stock right now.
||Espoo, Finland (1865)
||Chairman/CEO Stephen Elop (since 2010)
CFO Timo Ihamuotila (since 2009)
|Return on Equity (average, past 3 years)
||$13.4 billion / $6.6 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 10% of the 3,174 members who have rated Nokia believe the stock will underperform the S&P 500 going forward.
A few months ago, one of those Fools, dferry01, succinctly summed up the bear case for our community:
The smartphone market runs up big margins by charging a premium for style, image, and brand. ... Even if Nokia can ship a decent number of phones, they're just not going to be able accomplish the same per-unit profits as their cooler competitors. The company will survive and do fine enough, supplying down-market handsets to the emerging world and more economic first-world consumers, but it's not on the same playing field as Apple and isn't going to be.
If Nokia is locked out of the kind of high-margin sales operations that generate big profits, I don't see its bottom-line earnings rising quickly enough to beat the market.
If you want market-topping returns, you need to protect your portfolio from any undue risk. If Nokia presents too much risk for you, our analysts have found a great alternative in the mobile arena. In our special free report, "The Next Trillion-Dollar Revolution," we outline a mobile component play that is also a leader in the booming Chinese market. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.